Nigeria, August 31, 2025
News Summary
Holcim has completed the sale of its entire 83.81% stake in Lafarge Africa PLC to Huaxin Cement for an equity value of US$1.0 billion on a 100% basis before dividend adjustments. The divestment frees capital for Holcim’s NextGen Growth 2030 strategy, earmarked for organic growth, acquisitions and sustainability priorities including low‑carbon materials and circular construction. Huaxin, with operations across multiple countries and several African plants, plans to combine its expertise with Lafarge Africa’s local management. The transaction involved regulatory oversight and reflects a wider industry shift toward sustainability‑driven, higher‑margin markets.
Holcim completes US$1.0 billion sale of Lafarge Africa stake to Huaxin Cement to fund NextGen 2030 sustainable-growth plan
The construction materials company Holcim has completed the sale of its Nigerian business by transferring its entire 83.81% shareholding in Lafarge Africa PLC to Huaxin Cement. The transaction placed an equity value of approximately US$1.0 billion on a 100% basis before dividend adjustments, and the completion was reported in August 2025. The sale is described as a strategic reallocation of capital toward higher‑margin, sustainability‑aligned markets under Holcim’s NextGen Growth 2030 framework.
Transaction details and immediate implications
Holcim divested its full stake in Lafarge Africa, exiting a market characterized by regulatory and currency volatility, infrastructure bottlenecks, and elevated costs of doing business. The move frees capital for Holcim’s growth programs and aligns with a broader push to direct funds into markets and product lines with stronger industrialization fundamentals and momentum on decarbonization. The sale is presented as an allocation of capital away from a volatile environment toward operations and projects with clearer paths to sustainable, value‑accretive growth.
Buyer’s profile and intentions
Huaxin Cement, a Chinese cement producer with a footprint that includes more than 60 cement plants and other businesses in 12 countries, including seven in Africa, will operate Lafarge Africa under new ownership. The buyer emphasises a commitment to developing the Nigerian business further, leveraging Lafarge Africa management and staff knowledge in combination with Huaxin’s international experience to chart plans for growth in the local market. The leadership at Huaxin Cement has signaled an intention to integrate Lafarge Africa into its broader growth strategy and to build on the Nigerian team’s experience and market position.
Holcim and the NextGen Growth 2030 framework
Holcim described the divestment as a means to reallocate capital to markets and activities with higher margins and stronger momentum toward decarbonization and sustainable infrastructure. The company’s NextGen Growth 2030 framework outlines a capital deployment plan of CHF 18–22 billion between 2025 and 2030. Investments under this plan are earmarked for organic growth, value‑accretive M&A, and shareholder returns, with a strong emphasis on advancing sustainable construction and processing capabilities across the globe.
Sustainability targets and product focus
Holcim aims to have 50% of net sales from sustainable products by 2030, including offerings such as ECOPact and ECOPlanet. The company also targets a 50/50 revenue split between Building Materials and Building Solutions by the same year. In addition, a key environmental goal is to recycle over 20 million tons of construction demolition materials by 2030 through its ECOCycle technology platform. These targets are part of a broader push to advance circular construction and reduce the lifecycle footprint of building materials.
Market outlook and industry context
The construction materials market, valued at around US$1.57 trillion in 2025, is projected to grow at a 6.7% CAGR through 2032. Growth drivers include rapid urbanization and ongoing decarbonization efforts, which create demand for low‑carbon materials and more efficient building solutions. In this context, capital reallocation toward sustainable ventures is framed as strengthening balance sheets and aligning with environmental, social, and governance (ESG) metrics across the sector.
Regional strategy and broader industry trends
The divestment is presented as part of a broader industry pattern where Western firms reassess exposure in certain African markets, while Chinese firms and impact investors increasingly participate in regional acquisitions and partnerships. Holcim previously completed a similar exit in Zambia, transferring that stake to Huaxin Cement in 2021. The move, alongside ongoing global restructuring, underscores Holcim’s broader strategy to concentrate resources where industrialization fundamentals and decarbonization momentum are strongest.
Nigeria-specific considerations and regulatory context
The Nigerian divestment process faced regulatory complexity, including a Federal High Court order related to maintaining the status quo during an appeal. While these legal and regulatory dynamics added considerations to the transaction, the completion proceeded as part of Holcim’s strategic capital realignment. Holcim has an MSCI ESG rating of AA, underscoring its emphasis on sustainability and governance as it reallocates capital toward its long‑term transformation goals.
Additional context and corporate moves in 2025
Beyond Lafarge Africa, Holcim’s 2025 calendar shows activity across regions and portfolios designed to strengthen its sustainable growth trajectory. The company has pursued a series of value‑accretive acquisitions in target regions and expanded its Disensa retail network, adding hundreds of new stores in markets such as Peru and Argentina. These moves are cited as examples of disciplined capital management, digital efficiency, and carbon‑neutral product development informing Holcim’s competitive strategy as it pivots toward sustainable infrastructure and long‑term shareholder value.
Conclusion
The Lafarge Africa divestment marks a continuation of Holcim’s transformation toward growth with sustainability at the core. By reallocating capital to regions and activities with stronger decarbonization momentum and higher-margin opportunities, Holcim positions itself to advance its NextGen Growth 2030 priorities while supporting the development of Lafarge Africa under new ownership and continuing to catalyze progress in sustainable construction across its global footprint.
FAQ
- What was the scope of the Lafarge Africa sale?
- The sale covered Holcim’s entire 83.81% shareholding in Lafarge Africa PLC to Huaxin Cement for about US$1.0 billion on a 100% basis before any dividends, with completion in August 2025.
- What will Holcim use the proceeds for?
- The proceeds are intended to fund Holcim’s NextGen Growth 2030 strategy, supporting organic growth, strategic acquisitions, and shareholder returns while advancing sustainable product development and circular construction initiatives.
- Who is Huaxin Cement and what is their plan for Lafarge Africa?
- Huaxin Cement is a Chinese cement producer with a global footprint and significant operations in Africa. They intend to leverage Lafarge Africa’s management and staff knowledge to pursue growth opportunities in Nigeria and the surrounding market.
- What are the key sustainability targets under NextGen 2030?
- Targets include achieving 50% net sales from sustainable products by 2030, a 50/50 revenue split between Building Materials and Building Solutions, and recycling over 20 million tons of construction demolition materials by 2030 through ECOCycle.
- What is the market context for construction materials?
- The global construction materials market was valued at about US$1.57 trillion in 2025 and is projected to grow at a CAGR of roughly 6.7% through 2032, driven by urbanization and decarbonization efforts.
- Are there notable regional or strategic moves connected to this divestment?
- Yes, the sale aligns with Holcim’s broader strategy to rebalance exposure toward regions with stronger industrialization momentum, including Europe, Latin America, and North Africa, while pursuing a mix of organic growth and acquisitions in sustainable segments.
Key features of the post
| Feature | Description |
|---|---|
| Transaction value | US$1.0 billion equity value on a 100% basis before dividends |
| Stake sold | Holcim divested 83.81% of Lafarge Africa PLC |
| Buyer | Huaxin Cement, a Chinese firm with regional and African footprint |
| Strategic purpose | Reallocate capital to growth platforms under NextGen Growth 2030 |
| Sustainability targets | 50% net sales from sustainable products; 20+ million tons recycled by 2030; 50/50 revenue split |
| Market context | Global construction materials market ~US$1.57 trillion in 2025; CAGR ~6.7% to 2032 |
| Regional strategy | Focus on Europe, Latin America, North Africa; broader exit from volatile markets |
| ESG rating | Holcim holds an AA MSCI ESG rating |
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Additional Resources
- AInvest — Holcim strategic exit Nigeria: implications for capital reallocation
- Wikipedia: Holcim
- MarketScreener — Holcim divests operations in Nigeria
- Google Search: Holcim Lafarge Africa sale
- Agg-Net — Holcim close sale of Nigeria business
- Google Scholar: Holcim Lafarge Africa
- Global Cement — Holcim completes US$1bn divestment of Lafarge Africa stake to Huaxin
- Encyclopedia Britannica: Holcim
- The Africa Report — Huaxin Cement’s US$1bn Lafarge Africa acquisition hangs in the balance
- Google News: Holcim Lafarge Africa
